Banks get cash infusion

| Print |  Email
Archives - December 2008
Monday, December 01, 2008

PORTLAND As of mid-November, three Oregon banks are in line to get a federal infusion of cash.

Portland-based Umpqua Bank will get a $214 million cash infusion after selling that amount in preferred stock to the U.S. Treasury. Pending shareholder approval this month, Capital Pacific Bancorp in Portland will get $4 million. The Commerce Bank of Oregon will receive an undetermined amount from its parent company’s $1.4 billion Treasury investment. Zions Bancorporation owns Commerce.

The $250 billion Capital Purchase Program is meant to bolster healthy banks so they can lend more  and stimulate the economy. The feds are only investing in banks capable of paying it back, which has analysts scrambling to find out which banks didn’t make the cut, experts say.

“Behind the scenes almost every bank in the Northwest is applying for it,” says Ron Farnsworth, chief financial officer at Umpqua. “But they may apply and not get it, and that’s the investor’s concern.”  Umpqua’s stock value went up more than 20% since the announcement.

Concern has been raised about banks hoarding the cash. Participants must pay a 5% dividend on the shares issued to the government for the first five years of the investment, then 9% after that.

“There’s a lot of concern that banks have turned off the spigot,” says Capital Pacific CEO Mark Stevenson. “Even to their existing clients.”

Both Umpqua and Capital Pacific say they intend to lend the money to Oregon businesses immediately. 

JASON SHUFFLER


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

The ancient fish that stops bullets

The Latest
Friday, May 08, 2015
hagfishthumbBY CHRIS NOBLE | PHOTOS BY JASON E. KAPLAN

Hagfish may not have evolved much over the last 300 million years, but their protein-heavy slime promises advances in super-materials.


Read more...

Much ado about data-driven organizations, for good reason

Contributed Blogs
Monday, April 13, 2015
bigdatathumbBY GRANT KIRBY | OP-ED CONTRIBUTOR

The mega-shift from technology-driven to data-driven organizations raises questions about Oregon’s workforce preparedness.


Read more...

5 highlights from the Angel Oregon Showcase

The Latest
Thursday, April 23, 2015
IMG 5069BY JACOB PALMER | DIGITAL NEWS EDITOR

The entrepreneurial spirit was alive and well at the Oregon Angel showcase, an annual event for angel investors and early stage entrepreneurs.


Read more...

Intrepid reporter checks out ZoomCare rebrand

The Latest
Wednesday, May 27, 2015
dentistthumbPHOTOS BY JASON E. KAPLAN

Like all good journalists, OB editorial staff typically eschew freebies. But health care costs being what they are, digital news editor Jacob Palmer couldn't resist ZoomCare's offer of a three-in-one (cleaning, exam, whitening) dental office visit, guaranteed to take no more than 57 minutes. 


Read more...

Queen of Resilience

June 2015
Friday, May 22, 2015
BY AMY MILSHTEIN

Astrid Scholz scales up sustainability.


Read more...

100 Best Green Workplaces in Oregon

June 2015
Friday, May 22, 2015
BY KIM MOORE

As momentum grows at the state level to introduce far-reaching environmental regulations, such as carbon pricing and the Clean Fuels Program, Oregon employers continue to go the extra mile to create green workplaces for their employees.


Read more...

Energy Stream

May 2015
Monday, April 27, 2015
BY LINDA BAKER

Oregon already ranks as the nation’s second largest generator of hydroelectric power. (Washington is No. 1). Now an elegant new installation in Portland is putting an unconventional, sharing economy twist on this age-old water-energy pairing. The new system, launched this winter, uses the flow of water inside city water pipes to spin four turbines that produce electricity for Portland General Electric customers. 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS